US paying 'lip-service' to WTO food stockpiling: India

The government believes the US is only "paying lip-service" to the issue of the World Trade Organization (WTO)'s food stockpiling and subsidies programme, even as India is pressing all member countries for a discussion on this so that a permanent solution to the issue can be arrived at.

India was concerned if it "buckles under US pressure" and signed the trade facilitation agreement, the deadline for which was July 31, it would once again lose the "golden opportunity" to bring all developed countries to the negotiating table to discuss one of its main demands - food security, to which the US was "paying lip service", a senior official told Business Standard.

At the July 2-4 meeting of the preparatory committee on trade facilitation, India's ambassador to WTO, Anjali Prasad, said, "There is growing disenchantment, anguish and anger in our domestic constituencies and a sense of dejà vu, as once again, they see the interests of developing countries being subordinated to the might of the developed world."

On July 14, the US circulated an internal communication, seen by Business Standard, on its work programme on food security at the WTO headquarters in Geneva. The note didn't say anything concrete to assuage the concerns of India, as well as other developing countries, that it was serious about the issue related to public stockholding for food security purposes, part of the Bali Package, discussed at the ninth WTO ministerial in Indonesia.

In that note, the US said it "recognises food security is an enormously complex topic, affected by a number of policies, including trade-distorting domestic support, export subsidies, export restrictions, and high tariffs". It also suggested member countries compile a report for consideration by the WTO's committee on agriculture, based on what was decided in Bali. A permanent solution would be sought bases on the outcome of that report, the note said.

Officials here have rejected the US' suggestion, saying these steps were to "buy more time", while the trade facilitation agreement was passed.

During testimony before the House Committee on Ways and Means' subcommittee on trade, Deputy US Trade Representative Michael Punke had spoken at length on the benefits of an agreement on trade facilitation under the WTO, without mentioning food security and food grain stockpiling.

"WTO members are working on the specifics of how we bring the trade facilitation agreement (TFA) into force and implement its provisions. In this regard, we are confronting efforts by a small minority to change the conditions for implementation, as agreed in Bali. I want to assure you the US is insisting TFA implementation takes place in strict accordance with the procedures and timelines agreed by all ministers in Bali," Punke said. He added the US would "not sign on to a Doha package" under which they would provide more market-opening commitments. He exhorted developing countries with large and growing economies to contribute more.

India's commerce and industry minister Nirmala Sitharaman has said "it will be difficult" for India to sign the TFA at this point, as there was no assurance from the developed world on food security.

The Modi government has been pressing for the talks on food security to be expedited. The Bali Package was discussed under the previous UPA regime.

According to the Rushford report on 'The Politics of International Trade & Finance', developed countries want the TFA to be done away with, as a number of multinational corporations such as Apple, Vodafone, GE, Caterpillar, FedEx and UPS, Ericsson and E-Bay are expected to benefit from the seamless movements of goods and services across international borders that have stiff customs procedures.